Mid-Afternoon Market Update: DexCom Gains Following Strong Q3 Results; Obseva Shares Plunge

Toward the end of trading Thursday, the Dow traded up 0.88% to 27733.88 while the NASDAQ rose 0.67% to 8466.78. The S&P also rose, gaining 0.50% to 3,092.22.

Leading and Lagging Sectors

Energy shares climbed 1.2% on Thursday. Meanwhile, top gainers in the sector included NexTier Oilfield Solutions Inc. NEX, up 26%, and HighPoint Resources Corporation HPR, up 13%.

In trading on Thursday, utilities shares fell 1.9%.

Top Headline

Cardinal Health, Inc. CAH reported upbeat earnings for its first quarter.

Cardinal Health reported quarterly earnings of $1.27 per share, which beat the analyst consensus estimate of $1.09 per share. The company posted quarterly sales of $37.3 billion, versus analysts’ estimates of $36.75 billion.

Cardinal Health reaffirmed its FY20 adjusted earnings forecast of $4.85 to $5.10 per share.

Equities Trading UP

Invacare Corporation IVC shares shot up 37% to $10.84 after the company reported upbeat Q3 earnings.

Shares of Collegium Pharmaceutical, Inc COLL got a boost, shooting up 41% to $19.36 after the company reported better-than-expected Q3 EPS.

DexCom, Inc. DXCM shares were also up, gaining 28% to $195.24 after the company posted upbeat Q3 results and raised FY2019 sales guidance.

Equities Trading DOWN

Party City Holdco Inc. PRTY shares tumbled 61% to $2.40 after the company reported worse-than-expected Q3 EPS and sales results. The company also cut its FY19 EPS and sales guidance below analyst estimates.

Shares of Top Ships Inc. TOPS were down 56% to $1.24. TOP Ships priced its 4.2 million share common stock offering at $2 per share.

Obseva SA OBSV was down, falling 59% to $3.30. Obseva said the results from the Phase 2 European confirmatory study of nolasiban in women undergoing embryo transfer following in-vitro fertilization did not meet the primary endpoint of an increase in ongoing pregnancy rate at 10 weeks. The company also reported third-quarter results showing a wider loss for the quarter.
 

Commodities


In commodity news, oil traded up 2.4% to $57.71, while gold traded down 1.8% to $1,465.90.

Silver traded down 3.4% Thursday to $16.995, while copper rose 2.2% to $2.7245.

Euro zone


European shares closed higher today. The eurozone’s STOXX 600 rose 0.37%, the Spanish Ibex Index rose 0.52%, while Italy’s FTSE MIB Index climbed 0.56%. Meanwhile, the German DAX gained 0.83%, and the French CAC 40 rose 0.41% while UK shares rose 0.13%.

Economics

U.S. initial jobless claims fell 8,000 to 211,000 for the latest week. However, analysts were expecting a reading of 215,000.

Domestic supplies of natural gas climbed 34 billion cubic feet for the week ended November 1, the U.S. Energy Information Administration reported. However, analysts projected a gain of 39 billion cubic feet.

Data on consumer credit for September will be released at 3:00 p.m. ET.

Atlanta Federal Reserve Bank President Raphael Bostic will speak in New York at 7:10 p.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.